Dear colleagues,

The ability to run scenarios in real-time, collaboratively and with analytical insights across all levels of an organisation is a crucial measure of agility today. During my travels at the International FP&A Board meetings, I often ask the question, "How quickly can you run scenarios?" As the longer it takes, the further the organisation is from achieving a mature Financial Planning and Analysis ecosystem.

Unfortunately, not all companies are equipped to handle this task effectively. According to our annual FP&A Trends Survey, only 16% of organisations can run scenarios in less than a day, while 20% cannot do this at all, and an additional 26% need over a week.

Enhancing agility in FP&A Scenario Planning requires a balanced approach. For this purpose, we've developed the FP&A Trends Maturity Model Assessment. This tool serves as a crucial resource to evaluate your organisation's progress on the path to best-in-class FP&A. By leveraging this assessment, you can validate your capabilities and ensure maintaining a competitive edge in today's landscape.

In this issue, we bring you insights from our global community, featuring articles, a video, and our latest research paper that provide actionable steps for optimising and transforming FP&A Scenario Planning processes and driving organisational agility.

Kind regards,

Larysa Melnychuk, CEO and Founder
FP&A Trends Group & International FP&A Board

The FP&A Trends Maturity Model Assessment, a powerful tool based on extensive research and developed by the International FP&A Board.

This tool is an interactive questionnaire that helps you to assess your organisation's FP&A maturity compared to industry leaders and create a transformation journey to enhance your financial planning and analysis.

To start assessment, please, click here.

By Amrish Shah

It is high time to future-proof your organisation's resilience with the help of Scenario Planning. This approach to planning emerged in the 1970s, and since then, it has been successfully adopted by many organisations worldwide to prepare for plausible but uncertain futures. While this approach continues gaining momentum, many FP&A teams have not embraced it yet.

Read the article by Amrish Shah, CFO at Metabolic, to understand the challenges we may face when implementing Scenario Planning and how to address them effectively.

By Simone da Silva Collins

FP&A Scenario Planning is a vital tool for businesses to stay agile and proactive. It offers a financial representation of the company’s strategy, showcasing how its resources can be used most effectively. However, running meaningful scenarios can be complex without holistic financial modelling and data integrity.

Read this article by Simone da Silva Collins, Senior Financial Controller at Sony, to explore effective Scenario Planning techniques, understand the importance of data integrity, and learn how to avoid common pitfalls in financial modelling.

By Michael J. Huthwaite

Scenario Planning is a cornerstone for FP&A professionals, offering insights and strategic foresight. While glossy case studies and whitepapers often highlight best practices, the real magic lies in the intricate mechanics behind the scenes. Understanding the methods, complexities, and nuances of scenario modelling is crucial for accurate and actionable financial projections.

Read this article by Michael J. Huthwaite, Director of Product Management, Intelligent Reporting at Walmart, to delve into the most common techniques used in financial scenario modelling. Learn about deterministic and stochastic methods, explore practical approaches, and avoid common pitfalls to enhance your financial planning process.

By Massimo Garau

How can Scenario Management help your organisation chart a course to short- and long-term success? In his insightful presentation, Massimo Garau, CFO at Veganz Group AG, not only unveils the essence of Scenario Management but also outlines how it can become our ally in three types of planning - Strategic, Financial, and Operational.

Watch the video to learn his practical insights on implementing this approach successfully.

Uncertainty is the norm in today’s business landscape, and the future is filled with various possibilities. This presents a significant challenge for FP&A teams responsible for creating strategic plans. FP&A Scenario Management becomes a powerful tool that helps organisations not only foresee multiple alternative futures but also actively shape them.

However, moving to Scenario Management is not without its challenges. How can they be overcome? What steps should be taken to ensure the successful transition to Scenario Management?

Read our latest research to find out the answers and learn about the importance of this vital tool. The report evaluates the transition process and roadblocks organisations may encounter, with a focus on practical steps to embrace the Scenario Management ecosystem.

FP&A Trends digital events are vendor-agnostic and complimentary. If you are not able to join the live session, you can register to receive the recording later.

12 June 2024

Crafted over eight years by thousands of global senior practitioners and supported by thorough research, the FP&A Trends Maturity Model stands as a definitive benchmark for evaluating and enhancing FP&A practices. This model offers a custom roadmap for analytical transformation, incorporating a balanced approach essential for success.

Register for this webinar for expert insights and actionable recommendations on navigating Intelligent Transformation with the FP&A Trends Maturity Model.

19 June 2024

Nowadays, digitised FP&A Business Partnering is the latest trend that is going well beyond just Finance, involving the entire organisation to move FP&A to the next level.

Register for this webinar to delve deep into the art of digitised FP&A Business Partnering and unlock its potential to drive impactful change with a panel of senior practitioners and thought leaders.

Please refer to our Privacy Policy regarding the usage of your data by FP&A Trends. Contact us at privacy@fpa-trends.com if you have any questions or concerns.

All referenced trademarks are the property of their respective owners.